Both _____ on Credit by Households and _____ Interest Rates

question 93

Multiple Choice

Both _____ on credit by households and _____ interest rates set in motion the events that led to the 2007-2009 financial crisis.

• A) overspending; high
• B) underspending; high
• C) underspending; low
• D) overspending; low

---

Definitions:

Divisions

Separate units or sections of a larger organization, often characterized by distinct operations, products, or markets.

Funding

Financial support or resources provided to businesses, organizations, or individuals for a specific purpose, such as operations, projects, or investments.

Cost of Debt Capital

The effective rate that a company pays on its current debt, which can be measured as the after-tax rate of return to lenders or creditors.